what is an asset-backed lombard loan?
Asset-Backed Lombard Loans | ABL is a type of credit, offered in the form of a fixed loan or agreed overdraft granted against a pledge of liquid assets such as equities, bonds, or investment funds, up to a certain percentage of their value.
with an asset-backed lombard loan, assets remain invested –
The borrower retains all the related advantages of the assets (e.g. voting rights and dividends for equity holdings). So the borrower does not need to reduce their capital – or their potential returns – to obtain cash.
the borrower’s capital is at risk with ABL | Asset Backed Lombard Loan?
If the securities held as collateral lose value – for instance, because of market volatility or exchange rate risk – the borrower must provide more collateral or accept the possibility of a sale of their assets to reduce the amount of the Lombard Loan. Find out everything you need to know before taking out Asset Backed Lombard Loan.
bear in mind, borrowing money also costs money –
Using an Asset-backed Lombard Loan means accepting an obligation to repay a fixed amount of money at a fixed future date. The cost of the Asset-backed Lombard Loan will depend on the amount borrowed, the quality of the collateral, and the duration of the loan.
where to start >
We understand your needs are unique. So, if you are interested in taking out a Lombard Loan, get in touch with your relationship manager. They and our Credit specialists will devote the time needed to understand your personal situation so that we can offer you a Lombard Lending solution that is best suited to your needs. Asset-Backed Lombard Loan availability will depend on your financial situation and assets held with us. It will also depend on your investment knowledge, experience, and on the purpose of the Asset-backed Lombard Loan.
liquidity management –
Tailored support at every stage of your life to realize your aspirations.
We offer an individual and holistic wealth management approach that takes into account both your assets and liabilities.
Asset-backed Lombard Loan will complement in:
- Get projects off the ground or finalize work you have underway
- Finance lifestyle purchases (e.g. boats, property, or art)
- Obtain short-term liquidity
Asset-backed Lombard Loans are underpinned by our prudent risk policy, we lend conservatively, based on a measured assessment of the type and value of the collateral provided – giving you peace of mind during adverse market conditions and global movements.
Once you’ve been accepted for the Asset-backed Lombard Loan credit facility, you can obtain cash at any time without having to divest your portfolio or amend your long-term investment choices. That means you can achieve your financial goals without having to tie up assets in cash to get immediate access to liquidity. You could implement your cash management strategy and take advantage of investment opportunities that come your way.
diversify your investments –
Asset-backed Lombard Loan can strengthen cash liquidity in portfolios:
- Invest a larger portion of your assets with a view to improving portfolio performance.
- Diversify assets, seize new investment opportunities and broaden your investment horizons.
returns and diversification –
Asset-Backed Lombard Loan credit could allow you to leverage your investments. Re-investing the proceeds of the Asset-Backed Lombard Loan into your portfolio can multiply potential returns, although it can also multiply losses. By accessing more capital, you can diversify your asset allocation with a view to distributing risk more evenly.
preserve your capital –
Better estate and succession planning
Asset-backed Lombard Loan can enhance:
- Improve the efficiency of your wealth planning
- Benefit from our prudent approach to risk during volatility
improve the structure of your wealth from a tax perspective –
By using Asset Backed Lombard Loan to borrow against assets rather than selling them, you can defer capital gains tax. You can also use Asset Backed Lombard Loan credit to finance gifts or pay inheritance taxes. By taking a Lombard Loan out against an existing life insurance policy, you can maintain the tax benefits while covering your liquidity needs. This avoids any partial redemption of the policy that would lead to the taxation of unrealized gains.
our prudent approach to risk –
We maintain a prudent risk policy in all the activities that we undertake for our own account and on behalf of our clients. We lend conservatively, based on the type and value of the collateral provided – giving you peace of mind in the event of adverse market movements.
fixed term loan base rates (%) –
We are transparent and we want to make sure you have all the information you need before you draw or renew your fixed-term Asset-Backed Lombard Loan with us.
Lombard Loans can be issued in any major currencies.
- opportunity to increase your investment at any time
- extra liquidity resources
- no modification to your portfolio
- quick and flexible use
- available in all major currencies
- diversified and liquid portfolio
- up to 70% of credit
- 3 – 12 months and renewable loans
- attractive interesting rates
Your relationship manager will be pleased to discuss the current terms with you, and you may engage via email email@example.com.
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